A Senate committee has ordered a comprehensive performance audit of the National Electric Power Regulatory Authority (NEPRA) after raising concerns over billions of rupees in capacity payments to non operational Independent Power Producers (IPPs) and the regulator’s overall performance.
The Senate Standing Committee on Cabinet Secretariat also decided to refer the alleged unauthorized increase in salaries and allowances of NEPRA’s chairman and members to the Public Accounts Committee (PAC), saying the matter required detailed examination.
During a meeting chaired by Senator Rana Mahmood Ul Hassan, lawmakers expressed concern over capacity payments being made to power plants that are not operational, describing them as an unnecessary financial burden on electricity consumers. Members also criticized NEPRA for failing to provide tariff determination details despite repeated requests.
The committee further observed that certain IPPs had, at first glance, played a role in undermining the government’s solar energy policy. It also sought detailed information on all IPPs, including tariff determinations, generation capacity, installation costs, and rate analyses.
Lawmakers questioned the installation of imported coal and RLNG based power plants in Punjab instead of coastal areas. While officials said the plants were established near major electricity demand centers, the committee directed NEPRA to submit comprehensive data on the projects.
The committee also called for a review of electricity tariffs, renegotiation of IPP agreements where necessary, and the termination of unnecessary projects to help lower electricity prices.
Separately, the Cabinet Division informed the committee that NEPRA had increased the salaries and allowances of its chairman and members without obtaining federal government approval, despite revised market based remuneration proposed in 2018 still awaiting official approval.
The committee also reviewed the implementation of its recommendations on increasing the upper age limit and number of attempts for the CSS Competitive Examination, directing the Federal Public Service Commission and the Establishment Division to submit a compliance report. It also decided to discuss the government’s daily petroleum pricing mechanism at its next meeting.
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